The demand for cryptocurrency-based exchange-traded goods (ETPs), is growing, so the Australian financial market watchdog is asking the public for feedback.
On Wednesday, the Australian Securities and Investments Commission released a consultation paper that covered ‘cryptoassets’ as underlying assets of ETPs and other investment products. These products are unique and should be recognized by both market operators and product issuers, according to the regulator.
Alternative Bank Account. IBAN for Business Account
The consultation paper is looking for feedback on the following areas: Identifying crypto-assets with appropriate underlying assets, and establishing good practices in relation to pricing, risk management, disclosure, and custody.
“The proposals established good practices for market operator and product issuers concerning cryptoasset ETPs or other investment vehicles that provide retail investor with exposure to cryptocurrency-assets,” ASIC Commissioner Cathie Arour stated in a statement.
The Aussie regulator will accept feedback up to July 27, and then issue a feedback document. It plans to publish “final information” on market practices.
Armour said that market operators and product issuers must be aware of their regulatory obligations when creating, operating, and allowing these products. This will ensure that they are facilitated in a manner that protects investors and maintains Australia’s fair and orderly markets.
Push for Crypto Investment Products
Although Australia is still at the consultation stage to approve crypto ETPs for sale, these products are booming in Europe and other countries. Numerous European stock exchanges have started to list crypto-linked ETPs. These products are also gaining popularity.
But, the main target for the crypto industry is to get approval for a Bitcoin Exchange-Traded Fund (ETF in the United States), which seems to still be far from its goal despite years of push.